R&s Group Holding Ag Pref Class A · SIX:RSGN
R&s Group Holding Ag Pref Class A — R&S Group — FY2023 Earnings Presentation
41 slides from R&s Group Holding Ag Pref Class A's earnings presentation, Apr 17, 2024
Slide 1: R&S Group Full Year 2023 Results
R&S Group Full Year 2023 Results Presentation for investors, analysts and financial media 17 April 2024
Slide 2: Disclaimer
2 Disclaimer This presentation contains certain forward-looking statements. Such forward-looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, performance or achievements of t
Slide 3: Today's speakers
3 Today’s speakers Markus Laesser Matthias P. Weibel Group CEO Group CFO
Slide 4: Table of contents
4 Table of contents 1 Introduction and highlights – Markus Laesser, Group CEO 2 Strategy – Markus Laesser, Group CEO 3 Full year 2023 financial results – Matthias P. Weibel, Group CFO 4 Sustainability – Matthias P. Weibel, Group CFO 5 Outlook & take aways – Markus Laesser, Group CEO 6 Your questions
Slide 5: Highlights
Introduction and highlights 5 Highlights Successful year 2023 marked Solid order intake and Secular tailwinds for the by strong sales and record strong order backlog. electricity distribution profitability results. Net sales sector driving multi- (adjusted) up by 40% on an dimensional future growth.
Slide 6: R&S Group is well positioned with its footprint
Introduction and highlights 6 R&S Group is well positioned with its footprint R&S has the DNA of a quality local champion with the necessary scale 120+ distribution partners worldwide Growth 100+ driver in modernisation, years of experience in production1 decarbonisation and decentralisation Strong
Slide 7: Our highly reliable transformer portfolio
Introduction and highlights 7 Our highly reliable transformer portfolio Reliable and highly efficient electrical infrastructure products
Slide 8: Continued significant investment in 2023 to boost future growth
Introduction and highlights 8 Continued significant investment in 2023 to boost future growth
Slide 9: Strategy
Strategy Markus Laesser | Group CEO
Slide 10: Strong secular market tailwinds for increased electricity demand
Strategy ¦ Market 10 Strong secular market tailwinds for increased electricity demand Secular …combined with massive replacement …drive accelerated transformer tailwinds… requirements…. market growth Expected development of installed power generation capacity (GW) CAGR per region Increase of global
Slide 11: Well-positioned to capture growth from the ubiquity of electrification
Strategy ¦ Market 11 Well-positioned to capture growth from the ubiquity of electrification Changing electricity consumption Rise in traditional demand and the upgrading of grid infrastructure as well as the emergence of new demand through electrification Decarbonisation Expansion of large-scale ren
Slide 12: Strategic roadmap of ongoing & future upside levers
Strategy ¦ Our response 12 Strategic roadmap of ongoing & future upside levers Focus on what we have and accelerate. Create long-term value, based on leading M&A potential positions with selected products and specific countries. Focus on what we do best and offer our engineering expertise, quality a
Slide 13: Culture as a key driver for value creation and growth
Strategy ¦ Leadership 13 Culture as a key driver for value creation and growth Leadership development Objectives Practice and and activities behavior Culture aligned Values Goals with strategy
Slide 14: Strategic Initiatives already executed
Strategy ¦ Execution 14 Strategic Initiatives already executed Initiated groupwide Strengthened Insourcing of core Listing at Swiss Successful market Opening workflow product portfolio production. Stock Exchange entry into Rauscher & optimization and by expansion of SIX Nordics, the Stöcklin Plant i
Slide 15: Full year 2023 financial results
Full year 2023 financial results Matthias P. Weibel | Group CFO
Slide 16: Key messages per 31 December 2023
FY 2023 financial results 16 Key messages per 31 December 2023
Slide 17: Key financial figures 2023 (adjusted)
FY 2023 financial results 17 Key financial figures 2023 (adjusted) Consolidated key financial figures 20 22 20 22 20 23 20 23 Cha nge in r ep or ted 1 a d justed 1 r ep or ted 1 a d justed 1 a d justed figur es MCHF MCHF MCHF MCHF in% Order intake 240.9 231.6 264.6 245.0 2 6% Order backlog 158.9 151
Slide 18: Key messages per 31 December 2023
FY 2023 financial results 18 Key messages per 31 December 2023 • In 2023, we managed to grow in all of our core markets, both geographically and by product group. • The share of sales from long-term manufacturing orders (PoC projects) reached over 20% of total sales.
Slide 19: Strong growth of order intake and backlog
FY 2023 financial results 19 Strong growth of order intake and backlog TCHF until Nov. 2023 incl. SERW ORDER BACKLOG REPORTED 185.7 158.9 2022 2023 • Stable backlog 2024 with strong Value Added; continuously high monthly order intake; no margin erosion expected in 2024 in key markets (CH, GER, IT) O
Slide 20: Consolidated group results 2023 were impacted by three items
FY 2023 financial results 20 Consolidated group results 2023 were impacted by three items Three adjustments at holding level had a significant impact on the annual financial statements. According to FER 24/22, transaction costs may not be offset against equity, but must be expensed as "Listing cos
Slide 21: Consolidated profit & loss statement 2023
Appendix 21 Consolidated profit & loss statement 2023 A Net sales – adjusted net sales without SERW 201.6 MCHF (+40%) – small FX impact: based on prior year avg. exchange rates net A sales would have been 1.9% higher; mainly due to stronger B CHF vs. EUR B Semi-/ finished goods decreased in 2023 as
Slide 22: EBIT margin significantly improved
FY 2023 financial results 22 EBIT margin significantly improved Derivation of EBIT bridge (reported to adjusted) Write-off SERW higher PEEX higher non-operating OPEX income and Depr./Amort. EBIT SERW higher Value Added in 2023 (incl. higher material costs) (11 months) EBIT (loss) of SERW
Slide 23: Continuously increased levels of revenue and value add
FY 2023 financial results 23 Continuously increased levels of revenue and value add Quarterly performance illustrates how operating performance and margins have continuously improved over the last two years. 60.0 50.0 40.0 MCHF 30.0 20.0 10.0 0
Slide 24: Balance sheet and Cash flow: reduction of NWC unlocked cash
FY 2023 financial results 24 Balance sheet and Cash flow: reduction of NWC unlocked cash Net Working Capital Cash (exkl. own shares) Advanced in TCHF Payments from Cash Customers of 15 MCHF Operating Cash Flow
Slide 25: Guidance
Guidance We guarantee energy
Slide 26: R&S to deliver profitable growth on a sustainable basis
Guidance 26 R&S to deliver profitable growth on a sustainable basis 1 2 9-12% 16-18% of net sales 1 Latest guidance for 2024 (announced on January 24, 2024 2 Based on current mid-term plan
Slide 27: Stable shareholder base
Guidance ¦ Corporate Governance 27 Stable shareholder base Per 31 December 2023 Per 31 March 2024 Free float of 50.5% Free float of 57% Not registered Not registered Others Others 17.4% Janus Henderson Group Plc 14.6% 24.4% Swisscanto Fondsleitung AG 21.6% Swisscanto Fondsleitung AG 28.1% LLB Swiss
Slide 28: Sustainability
Sustainability Matthias P. Weibel | Group CFO
Slide 29: Report on non-financial matters
Sustainability 29 Report on non-financial matters • The non-financial report is separated from the annual report and has been established in accordance with Art. 964a et seqq. of the Swiss Code of Obligations. • We recognize the environmental footprint of our operations and seek to avoid, minimize a
Slide 30: Implementation of sustainability initiatives across our transformer value chain
Sustainability 30 Implementation of sustainability initiatives across our transformer value chain Everything from the materials that …to how products are designed and perform transformers are made from… supply partnership with production partnership with Grain oriented electrical steel CO2 intesity
Slide 31: Outlook & take aways
Outlook & take aways Markus Laesser | Group CEO
Slide 32: Investment summary for future value creation
Outlook & take aways 32 Investment summary for future value creation 1 Strong secular tailwinds for the electricity distribution sector driving multi-dimensional future growth Well-established leadership positions in selected products and geographies provide a platform to replicate success in 2 attr
Slide 33: Outlook & take aways
33 Outlook & take aways Focus on what we do best and offer our engineering expertise, quality and reliability to new markets. 1 2 3 4 With our ongoing measures We expect continued strong Execution of our growth Our leading market shares to boost productivity, we demand over the long term, strategy.
Slide 34: Q&A
Q&A Thank you for your attention. We are now happy to answer your questions.
Slide 35: Financial calendar | Contacts
35 Financial calendar | Contacts Financial Calendar Annual General Meeting 28 May 2024 Trading update half-year sales 24 July 2024 Half-year results 2024 11 September 2024 Capital Markets Day 31 October 2024 Contacts Investor Relations: Media: Doris Rudischhauser Nicolas Weidmann Phone: +41 79 410 8
Slide 36: Presentation name (Insert > Header and footer)
36 Presentation name (Insert > Header 17.04. and footer) 2024
Slide 37: Appendix
[a ees aE 2 RS Appendix aia = ae i Oo R&S We guarantee energy
Slide 38: Consolidated profit & loss statement 2023
Appendix 38 Consolidated profit & loss statement 2023 A Net sales – adjusted net sales without SERW 201.6 MCHF (+40%) – small FX impact: based on prior year avg. exchange rates net A sales would have been 1.9% higher; mainly due to stronger B CHF vs. EUR B Semi-/ finished goods decreased in 2023 as
Slide 39: Consolidated Balance Sheet per 31 Dec 2023
Appendix 39 Consolidated Balance Sheet per 31 Dec 2023 A B A A A B B C D A Increase of cash due to intensive NWC-Mgmt, E incl. high advances from customers F B In connection with the IBC: 9.8 MCHF short-term bank loans and 30 MCHF long-term liabs. C C R&S International Holding AG as accounting acqui
Slide 40: Goodwill calculation in detail & consolidated Equity per 31 Dec 2023
Appendix 40 Goodwill calculation in detail & consolidated Equity per 31 Dec 2023 R&S International Holding AG as accounting acquirer absorbed the net liabilities of VT5 Acquisition Company AG, which subsequently changed its name to R&S Group Holding AG. The Goodwill was determined as difference betw
Slide 41: Consolidated Cash Flow Statement 2023
Appendix 41 Consolidated Cash Flow Statement 2023 A mainly attributable to higher tax provisions as a result of the overall increase of A the business volume and operational profit, higher accrual for bonus and A customer claim B B B write-off of recycled goodwill from acquisition of SERW, initially